MFs’ asset base hits all- time high

Monthly rise in the asset base is mainly due to the industry body’s investor awareness campaign and strong participation from retail investors, Amfi CEO N. S. Venkatesh said.

New Delhi, Sept. 7: Mutual funds’ asset base touched a record ` 25 lakh crore in August- end, a surge of 8.41 per cent over the previous month, on the back of robust inflow in liquid funds and strong participation from retail investors.

According to Amfi data, the asset under management ( AUM) of the industry, comprising 42 players, was ` 23.06 lakh crore at the end of July.

The total asset base of all the fund houses put together was ` 20.6 lakh crore in August last year.

The monthly rise in the asset base is mainly due to the industry body’s investor awareness campaign and strong participation from retail investors, Amfi CEO N. S. Venkatesh said.

Besides, Systematic Investment Plans ( SIPs) continue to be the fancy of retail investors and people continue to invest through the route as it allows investors to invest in small amounts periodically instead of lump sum, he added.

He further said that SIP helps in rupee cost averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.

The industry’s AUM had crossed the milestone of ` 10 lakh crore for the first time in May 2014 and in a short span of about three years, the asset base had increased more than two folds and crossed ` 20 lakh crore in August 2017. Now, the industry AUM stood at an all- time high of ` 25.2 lakh crore at the end of August.

The surge in the asset base could also be attributed to staggering inflow of ` 1.75 lakh crore in mutual fund schemes last month.

This included ` 1.71 lakh crore in liquid funds or money market segment which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon.

Besides, equity schemes attracted over ` 7,700 crore.